As the global health emergency continues to impact the tourism industry, Tourism Kelowna continues to gather data and intelligence in order to monitor its local impact.

Local Industry Performance

Visitation to Kelowna and the Central Okanagan rose during the month of November, with a total of 116,170 total trips it saw a 21.6% increase over the same month in 2019. This leads to a total of 1.7 million trips for the year (eleven months ending in November). Given the provincial health orders that were put in place in November, it is not surprising that three-quarters of the total trips into the Central Okanagan originated from BC.

The average occupancy rate for accommodations in the area for November was 25.7%, registering a decline of 27-points year over year (YOY), bringing the yearly average hotel occupancy to 42.7%, 25 points lower than the same time period in 2019. This data continues to show that visitors are selecting less traditional forms of accommodation, such as short-term rentals (Airbnb, VRBO) and staying with family and friends, rather than more traditional hotels and motels. 

Lead times and booking windows continue to shorten, and time researching destinations has increased significantly. This serves as a reminder to make sure your website and social media are updated regularly, not only with inspiring messaging but also with information regarding your COVID-19 measures and procedures

Whereas the summer season saw hotel occupancies consistently higher than the provincial average, the fall season has seen a steady decline, due primarily to the uncharacteristically cold weather and early snowfall the area saw in early October coupled with the travel restrictions that are currently in place and recommend essential travel only. 

Visit our Monthly Industry Indicators page for a month-by-month breakdown of our research. 

National Performance

Destination Canada forecasts that full recovery could occur anywhere between 2024 and 2026 depending on the when the border re-opens to our key international markets and all domestic restrictions are lifted. The expected loss in revenue for the industry nationally is forecasted at between -46% to -60% depending on border reopening (Jan 2021 vs Oct 2021). The domestic market is expected to recover by 2022 under all scenarios if COVID-19 remains under control following the second wave. You can access the full report here.

The consulting firm CBRE Hotels recently released a Q3 2020 industry update report. The tourism industry was hoping for higher summer travel demand to try and make up for the impacts of the spring; however, this did not materialize. Average occupancies in the country only reached 40% in the key months of July and August. The CBRE report, which you can access here, delves into the financial repercussions for operators and presents their recovery outlook to 2025.

Other Data Sources

Our regional, provincial, and national counterparts also continue to provide timely data on resident sentiment, hotel occupancies, and visitation. 

The Thompson Okanagan Tourism Association (TOTA) publishes a biweekly research roundup post called "Fast Facts," which can be accessed on the TOTA website or delivered to your inbox by subscribing to TOTA's newsletters

Destination British Columbia (DBC) has a robust Research & Insights section on their website that includes COVID-19 Research Roundup Reports. Published weekly, these aggregate a large amount of BC-specific indicators that include hotel occupancy and visitation, resident sentiment, movement across BC, ferry volume, and airline bookings, just to name a few. You can find the weekly reports by clicking here or you can subscribe to their newsletter and receive it weekly. 

Destination Canada also has a COVID-19 specific research page that offers reports and insights from a national perspective. You can click here for more information or subscribe to their newsletters for timely information. 

For questions regarding local industry performance, please contact me at sara@tourismkelowna.com or (250) 861-1515 ext. 218.